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Assurance and institutional risk guidance

HEFCE and other organisations offer support to higher education institutions (HEIs) through the provision of guidance. Most guidance is designed to offer help in improving structural arrangements and administrative processes.

In such a diverse sector, it can be difficult to provide guidance which is of universal value. Accordingly, most HEFCE guidance offers a view on what constitutes good practice and allows institutions to interpret the information provided in the context of their own circumstances. Guidance rarely intends to present a 'solution' to an issue and is, in that sense, not intended to be prescriptive. However, as HEIs have 'value for money' obligations, we expect them to adopt good practices where appropriate. This implies that HEIs should at least consider relevant guidance and use it as they see fit. Where recognised good practices are not adopted by an HEI, we expect that they will be able to justify why this is the case, if asked to do so.

HEFCE considers it reasonable to expect professional and other staff in HEIs, as well as relevant representative or professional bodies to which they might be members, to 'scan the horizon' for the existence of new guidance (from whatever source) promptly.

The assurance and institutional risk service adopts its own guidance principles in its assessments of HEIs.

Audit-related guidance

• Audit-related guidance is usually designed to help institutions meet their public accountability obligations more visibly and effectively or to perform more efficiently, economically or effectively. It is directed at external audit providers to the higher education (HE) sector, institutional internal audit services or providers of internal audit where they are outsourced.
• Guidance on risk management is principally for the internal audit function and audit committees.
• Guidance on governance and strategic management, are directed towards senior managers, and, where appropriate, to chairs of governing bodies.

Financial guidance

We are developing financial guidance with sector professional bodies. This aims to clarify:

• standards of financial reporting and disclosure
• European and UK legislation in relation to public funding
• the charity status of HE institutions and tax
• the principles of costing and pricing for research and teaching activities
• strategic and project financial management
• and our accountability requirements under the Financial Memorandum.

Guidance on the estate and space management

Our advice is supplied on an institutional basis, in providing assurance through knowledge-based risk assessments, evaluating the estates strategies and estates management in institutions and in monitoring and advising on the use of our capital grant funding. It is also provided on a sector basis, in gauging the capital needs of the sector and contributing to the policy decisions on the distribution of capital grant which funds the continuous improvement of HE estates and their management.

Last updated 9 November 2011